Bid Management Strategies for Google Ads: Manual vs. Automated (Smart Bidding)
October 12, 2023 | PPC ADVERTISING
Google Ads has been evolving, pushing advertisers towards automated bidding strategies, which can be a mixed bag of options and choices. Among these strategies is Smart Bidding, which encompasses a range of automated bidding methods aimed at optimizing campaigns. In this guide, we’ll explore the differences between manual bidding, automated bidding, and the various Smart Bidding strategies available in Google Ads.
Understanding Bidding in Google Ads
When you set up a Google Ads campaign, you determine how much you’re willing to pay for each click on your ad, known as your bid. There are two primary ways to set your bids: manually or through automation.
Manual Bidding
With manual bidding, you specify the maximum amount you’re willing to pay for a click (CPC), and you can make adjustments based on performance data available in your reports. This method gives you direct control over your bids.
Automated Bidding
Automated bidding uses machine learning algorithms to adjust your bids automatically. These algorithms consider various factors, including the likelihood of getting a click or conversion. Automated bidding often uses data not available in standard reporting metrics.
The Smart Bidding Options
Google Ads offers a variety of automated bidding options, often referred to as Smart Bidding. These options include:
- Enhanced Cost Per Click (ECPC): Adjusts bids to maximize conversions or conversion value.
- Maximize Clicks: Aims to get as many clicks as possible within your budget.
- Maximize Conversions: Seeks to maximize the number of conversions while staying within your daily budget.
- Maximize Conversion Value: Focuses on maximizing the value of conversions.
- Target Cost Per Action (tCPA): Aims to achieve a specific cost per action or conversion.
- Target Return on Ad Spend (tROAS): Optimizes for a target return on ad spend.
- Viewable CPM (vCPM): Bids for impressions when your ad is viewable.
- Cost Per View (CPV): Used for video ads, where you pay for video views.
Is Smart Bidding the Same as Automated Bidding?
Smart Bidding is often used interchangeably with automated bidding, but it’s important to note that Smart Bidding specifically refers to Google’s automated bidding strategies that use “auction-time bidding.” These strategies aim to optimize for conversions or conversion value in every auction.
Smart Bidding strategies include Enhanced CPC, Maximize Conversions, Maximize Conversion Value, Target CPA, and Target ROAS. While all Smart Bidding strategies are automated, not all automated bidding strategies are considered Smart Bidding.
Choosing the Right Bidding Strategy
When deciding on a bidding strategy, consider your campaign goals and the amount of historical data you have available. Google will automatically recommend a bidding strategy based on your objectives, but you’re not obligated to follow this recommendation.
You can choose a different automated bidding strategy or opt for manual bidding. Google Ads allows you to select your preferred bidding strategy at the ad group, campaign, or portfolio level, offering flexibility in managing your bids.
Manual Cost Per Click (CPC)
Manual CPC bidding is the most straightforward method, where you set keyword-level bids and have full control over adjustments. It’s a suitable starting point for beginners but requires ongoing monitoring and adjustments.
Enhanced CPC (ECPC)
Enhanced CPC is a semi-automated approach that allows Google to make bid adjustments based on manual keyword bids. It’s a step towards automation while retaining some control over your bidding strategy.
Maximize Conversions
Maximize Conversions is a fully automated strategy that aims to maximize the number of conversions within your daily budget. It’s ideal for advertisers seeking high conversion volume.
Maximize Clicks
Maximize Clicks is similar to Maximize Conversions but focuses on generating as many clicks as possible while adhering to your daily budget. It’s useful for driving traffic and brand awareness.
Maximize Conversion Value
Maximize Conversion Value is designed to maximize the value of conversions rather than their quantity. It’s suitable for advertisers prioritizing the quality and value of their conversions.
Target CPA (tCPA)
Target CPA allows you to set a specific cost per action or conversion goal. Google adjusts your bids to achieve that target while optimizing for conversions.
Target ROAS (tROAS)
Target ROAS focuses on achieving a specific return on ad spend. Google’s algorithm optimizes your bids to maximize conversion value while meeting your target ROAS.
Target Impression Share
Target Impression Share is a bidding strategy where you set a goal for the percentage of impressions your ad should receive. It’s suitable for advertisers focused on visibility and brand awareness.
Viewable CPM (vCPM)
Viewable CPM is designed for display ads, allowing you to bid for impressions when your ad is viewable. It’s a strategy to expand your brand’s reach.
Cost Per View (CPV)
CPV bidding is specific to video ads, where you pay for video views. It’s effective for advertisers looking to promote their video content.
Choosing the Right Strategy for Your Goals
When selecting a bidding strategy, evaluate your campaign objectives, conversion data, and your level of comfort with automation. Remember that automated bidding strategies can save time and optimize your campaigns, but they still require periodic monitoring and adjustments to ensure they align with your goals.
Conclusion
Google Ads provides a range of bidding strategies, from manual to automated, with Smart Bidding strategies falling in between. The key to success is choosing the right strategy based on your specific campaign objectives and available data. Whether you opt for manual or automated bidding, ongoing monitoring and optimization are essential to achieving your advertising goals.